Residents Get $6 Million in Faulty Condos Lawsuit

Homeowners in a 222-unit condominium complex were awarded $6.25 million this week to settle a lawsuit claiming faulty construction against the builder.

Owners of homes in the Altisse condo community sued in 1993 in Orange County Superior Court against Barratt American Inc. of Irvine and 22 subcontractors seeking money to cover repairs.

Construction flaws became apparent soon after completion of the complex, built in 10 phases from 1989 to 1991, said Karen L. Karavatos, a lawyer representing the Altisse Homeowners Assn., which filed the suit on behalf of its members.

“Many homeowners were complaining about leaking roofs and leaking windows,” she said. Other problems included rear patio masonry walls that were cracking and pulling away from the structures, she said.

Partly because of those problems, Karavatos said, the value of the two- and three-bedroom units has dropped from initial selling prices ranging from $180,000 to $250,000 to as low as $130,000 today.

“The roof leaks were so bad that we had to put tarps all over the building during the rainy seasons to stop further water from pouring in,” she said. “When you are up in the attic, you can actually see daylight up through the framing; it’s the worst project I’ve seen in some time.”

Under the terms of the settlement, all of the money paid by the builder and subcontractors will be used to repair structural flaws and the damage they caused.

“We think it will go a long way in repairing the problems,” said Kim Shaw, president of the homeowners association.

One subcontractor, Far West Roofing of Orange, made a settlement offer that was rejected and now faces a separate claim by the homeowners association, which is seeking damages of $2 million.

A hearing in that case is scheduled for May 5 in Orange County Superior Court.

Jim Stephenson, another Altisse owner and board member, recalled coming home on a rainy day in 1990 to find water streaming down the interior walls.

“The water was actually puddling on the tile at the base of the fireplace,” Stephenson said. “It was running down the walls around our chimney.”

“I certainly hope it’s enough money to cover all the problems,” he said.

John Simpson, a lawyer representing Barratt American, said Friday, “I think it was a fair settlement.”